Starting a gym: Profitable?

[eat2gain]

Hey I thought there would probably be a few people on here that have owned or do own there own gym and was wondering if you can make decent profits or if its not so great. Also any other suggestions would be appreciated. Been thinking about maybe starting a gym up as we only have one where I live (other than the womens curves place).

 

[eddymerckx]

Hey I thought there would probably be a few people on here that have owned or do own there own gym and was wondering if you can make decent profits or if its not so great. Also any other suggestions would be appreciated. Been thinking about maybe starting a gym up as we only have one where I live (other than the womens curves place).

almost impossible to make money unless you do the nonsense that all the big chains do--cash up front the hope you never show up. i worked in the industry before i went to law school--all the small gyms were more hobbies and the owners had other jobs.

 

[eat2gain]

almost impossible to make money unless you do the nonsense that all the big chains do--cash up front the hope you never show up. i worked in the industry before i went to law school--all the small gyms were more hobbies and the owners had other jobs.

Well that sucks, thanks though. Maybe I'll open up like a supplement type store instead.

 

[ponyfitness]

Find good real estate, get into it for two years, establish good books while losing money and then hope a big chain offers to buy you out because that is the only way to make a serious profit in less than 5-10 years if you ever do. Plus you have to work 90 hour weeks to make sure everything is running properly.

 

[needtogetarmy]

almost impossible to make money unless you do the nonsense that all the big chains do--cash up front the hope you never show up. i worked in the industry before i went to law school--all the small gyms were more hobbies and the owners had other jobs.

That is pretty much what I found out doing research when I was planning to open a gym. It is very competitive. Even the gym I have been going to for years, which has been open for over 30 years, is getting hammered by the corporate gyms that have opened. My guy used to have loyal locals too that have switched. He is close to going under.

The key though is to differentiate what you are offering and focus on a specific demographic. My wife is a PT and she is going to open her own clinic one day and we plan to have a gym with it. It will not be like Golds etc. and it will care more to the rehab demographic. 99% of the local gyms do not differentiate their marketing mix though. They all focus on price cutting and that is one of the reasons why the market is very competitive and difficult to enter.

 

[Razorguns]

considering even bally went bankrupt. no. unless you have some unique angle.

r

 

[mustang_00]

all the ones i know who have gyms have other jobs too. it's really hit or miss bro. then again they don't offer 24 hours. more people would come to those types but i'm not so sure how much it would even help with that angle...

 

[RobertFontaine]

Good thing my basement is unfinished.

 

[manny78]

Youre not going to make money for the first 2-3 years then by that time, a big chain will most likely show up, give out memberships at a ridiculous fee and screw you for good.

 

[timtim]

buy one of the speed training schools for athletes, put that in the gym. youll have a better chance.

 

[EZ_E]

Already too many gyms and not nearly enough health concious people out there...

Hell, even most of the people that have the memberships and use them are fat and unhealthy...

 

[walliwalibus]

If you can keep it open 24/7, get insurance on the free weights, and then pick the good peeps who are at the other places. Do some serious homework, and study who is a potential at another place. You know, like someone who actually looks like they are hardcore dude. Approach them and give out good fair deals.... that would be cool cuz you know you surrounded by good peeps who take it seriously, and you not chasing everyone for their payment.

 

[the_alcatraz]

do you expect to compete with the big corporate gyms?

What is your target market?

How big is the facility and what are the offered services?

 

[milo hobgoblin]

I and a few other guys opened a Gold gym in North County San Diego back in the late mid 90's. Making a decent profit was a bitch at best.. between taxes, fees, insurance and outlandish lease rated.. UGH. Most of us worked 6 day weeks 10 hours min. as we were owner operated to keep costs down.

With that same model.. it "might" work if you could find some nice midwest low tax non-liberal state where you dont get fucked in the ass for all the insurance.. and the lease payments for the property are reasonable. You wont be rich but you could make a decent living until the corporate gyms open up.

It was fun while it lasted.. but I knew when it was time to get the fuck out..

the irony is we sold the chain to Ballys.. who eneded up pissing off the members and are now in bankruptcy..

I will say .. from the viewpoint of someone who has owned and operated a gym.. Ballys has the worst managers and customer service of any gym Ive ever worked at or been a member of. I have never seen lazier, slothful and stupid employees and managers in any industry than at Ballys.. that even includes my time in the USMC

 

[the_alcatraz]

also, is it a franchise or are you building a private gym?

 

[RobertFontaine]

The kind of gym I'd like to see.... 20 power racks, free weights, a few bikes, treadmills, rowers wouldn't make any money but it would be nice to own if it could pay for itself in perpituity.